Trading Strategy – SPDR S&P Bank ETF

The benchmark 10-year Treasury note yield rose to 2.98 percent Wednesday, following yields in Europe after the European Central Bank hinted at winding down its asset-purchasing program. Shares of J.P. Morgan Chase, Bank of America and Morgan Stanley all rose more than 2 percent. The widely watched SPDR S&P Bank ETF (KBE) gained 2.1 percent, bringing its YTD gains up to 7 percent, outperformed the S&P by a wide margin. Now the question is whether the rally has more legs? Below is an update look at a trade in KBE.

The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red.

Chart 1.1 – SPDR S&P Bank ETF (weekly)

Our “U.S. Market Trading Map” painted KBE bars in green (buy) – see area ‘A’ in the chart. Over the past few weeks, KBE had been trending higher after the March correction found support near the 4-year moving average. This week’s rally pushed the ETF above the 20-week moving average…Click here to read more.

You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.

This is just an example of many successful trades that our member had enjoyed recently. After all, aren’t you glad you subscribed?

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